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Order of December 28, 2020 No. 3579-r

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Order of December 28, 2020 No. 3579-r

The work of state corporations and development institutions will begin to be assessed by key performance indicators (KPIs), and the level of remuneration of top managers will also depend on their achievement. Methodological recommendations for calculating these parameters were approved by Prime Minister Mikhail Mishustin.

KPIs will be divided into two groups: financial, which characterize the profitability of the organization, and sectoral, linked to national development goals. The total number of indicators is limited to ten, and the share of each must be at least 5% (10 indicators – 100%).

The first group is recommended to include the return on invested or equity capital, revenue dynamics, and shareholder income. The second is the number of jobs created, the volume of attracted investments, contribution to non-resource non-energy exports and budget efficiency. This group is also allowed to include specialized KPIs, including the continuity and security of service delivery.

Sectoral KPIs for each organization will be determined by its governing body in agreement with the relevant ministries and departments.

Taking into account the specifics of their activities, companies will be divided into four categories: operating in a competitive market, natural monopolies and infrastructure companies, financial organizations, development institutions. This breakdown will help you better calculate the KPIs for each structure separately.

The decision to introduce the KPIs was taken as a continuation of the reform of development institutions. Mikhail Mishustin announced its start on November 23. The goal of the reform is to make institutions more efficient and reorient them towards achieving the national development goals approved by the President of Russia.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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